What are some error checks you could do to make sure your LBO model is correct?

You can make sure your balance sheet balances: total assets = total liabilities + shareholder’s equity. You can also try to build a bridge from EBITDA. You can also look at the cash flow statement as well to make sure debt repayments / borrowings are linked properly to the debt schedule. If you are doing a cash flow sweep, which is when all cash flow is used to pay back debt, and you have positive cash flow, then you should usually have a change in cash of zero in most years until the debt is paid down since all the cash will be used to pay back debt.

The most important check of all is to view it from the perspective of the user. Pretend that you are the client or investor and look for the most important high-level metrics such as revenue growth, EBITDA margin, etc. Look for any large swings that can’t be explained, and always ask if the changes year-to-year make sense. If anything looks strange or stands out, investigate it and get to the root of the issue.